In this popular monthly feature, IFA Magazine talks to leading advisers about what’s working well in their financial planning businesses. This month, Sue Whitbread talks to Sandy Robertson, Managing Director of Acumen Financial Planning about building a great business and why the five Fs are so important.
- How did you originally get into financial planning as a career? When and why did Acumen start?
Many years ago whilst I was MD of an Accountancy practice, I attended a CPD course in Glasgow organised by ACCA. As part of it, the late David Norton, a past president of the Institute of Financial Planning (IFP), a chartered accountant himself and a leading financial planner gave an inspiring presentation on financial planning. He encouraged me to go to the then tiny IFP Annual Conference in Oxford for a couple of days. The rest as they say is history, my interest in financial planning was firmly established. I was information hungry, and inspired to sit the IFP’s fellowship examination.
After a brief period of advising within our Accountancy firm, Acumen Financial Planning was established as an independent entity in 2002 in a low-key fashion with a small team.
- So, if we fast forward 15 years to look at Acumen today – what does the business look like now?
We have a team of 36 staff based across four sites in Scotland and one planner based in Norwich. We have 13 planners, supported by 9 paraplanners, and an admin team of 6. In addition, we are well under way in developing a small and focussed business support team responsible for; compliance, training, marketing and communication, IT, finance, HR, management information and anything else that is not directly associated with supporting our clients.
We currently serve 1750 clients with FUM of £400 million. In recent years and as the team has developed, we have averaged net new annual increases of £20 million which is a combination of existing and referred clients adding more to our platforms than they withdraw. Over and above that, as you know, financial markets have been kind to us in recent years and a small acquisition along the way, pulls the numbers in the right direction.
We have always been focused on providing exceptional service – getting our clients from their various A to Bs in life with complete financial security. This focus is 20% investing and 80% planning.
When it comes to our investment strategy, our clients are coached to be patient investors so that they can participate in long term investment returns. Provided we ensure the cost of investing is managed to a minimum, and we ensure all controllable risks (including taxation) are managed effectively, the returns our clients achieve during their lifetime will reliably underpin their various plans.
The main risks to clients’ plans are themselves, their health and their circumstances. This is why 80% of our focus is on this piece, because at least some of it is controllable.
- What are the main principles on which Acumen Financial Planning is set up and run? What’s your vision for the future of the business and for the service you deliver to clients?
We operate a family culture and are fiercely independent, answerable only to our clients, our conscience and to the various professional bodies with which we have qualifications.
Our principles are:
- Work tirelessly in our clients best interests.
- Clients interests are best summarised in a plan.
- Don’t invest a penny of clients’ capital until their plan – and their real life risks to the plan – are understood.
- Be careful with clients’ capital; defend it against institutions and intermediaries, their sales targets, fancy schemes, new investment ideas, illiquid investments, and products with dates, lock ins, kick outs etc.
Our vision is that financial planning will eventually reach a tipping point and it will be recognised by the government, regulators, graduates and clients as being equal to or ahead of the legal and accounting professions. Our mission is to play our part of that in Scotland and perhaps further afield.
- How important is technology in working towards that vision? You developed your own cash flow modelling system many years ago. How has that changed over the years and does it still meet your needs?
Technology is inextricably linked to our lives these days. Clients have their own views which are based on their real world experiences; electronic banking, Amazon, iTunes, booking airline tickets, etc etc. Their service expectations are much higher than they were 10 years ago, and so financial planning has to adapt or run the risk of not being at all relevant to the next generation of potential clients. Our own cash-flow modelling system was created several years ago, and continuously improved, functioned very well. After doing our research, we recently chose Voyant as a successor due to its superiority in; modelling capability, visuals, taxation, modelling and data entry. Our next project is to completely review CRM, data security, and call monitoring – enough to be getting on with.
- What are your strategic business goals for 2017 and beyond? Are you planning any major changes?
We are thinking more along the lines of 2020 and what we will need to be by then if we are to accomplish our Mission. We want to make tangible progress toward:
- client facing IT functioning as well as Amazon’s
- Premises having a relaxed and professional ambiance for client meetings.
- Have the business and its core offerings of a scale to offer real and lasting career opportunities to bright, hard working and engaging people.
This is aspirational and a big ask I know, but it is the way we are thinking.
- Acumen is a CISI Accredited Financial Planning Firm and also a Chartered Financial Planning firm by CII. How important are these accreditations to you, to the business, and to clients also?
We became an accredited financial planning firm shortly after the IFP began accrediting firms in 2011. It was a culmination of events really. We had been approached by several firms to join forces with them and we had been thinking about whether we wanted to join, sell or go it alone. We decided that Acumen was not for sale and so we decided to future proof the business by making sure we had the right people, processes and systems in place to be in as strong a position as we possibly could be. So accreditations and awards are very important in that they recognise that we have made significant progress along the way. When we have vacancies, we are getting strong candidates coming through who want to play their part in our future.
We were delighted to be awarded the CISI Accredited Financial Planning Firm of the Year in October 2016. We have a strong business supported by a loyal and growing client base and a fantastic team. We are all very proud of what we have achieved.
- What have been the biggest drivers of success for the business over the years?
I would put our success down to the following four elements:
- Selling the accounting business to its management in 2009 and focussing all our energy in financial planning.
- Having a young management team of true professionals in place.
- Believing in and communicating what financial planning is all about to clients.
- Sticking to the business principles we have already mentioned, and not wavering from that.
- What are your main business challenges at present?
Our main challenge is finding a reliable way to grow our own talent.
- Marketing is often a challenge for financial advisers and planners. Do you have any tips for other advisers or financial planning firms on how to keep new enquiries coming in – and also on keeping existing clients happy with the service they receive?
We recruited a marketing professional whose tips include:-
- Keep your business client focused and consider profiling your target market
- Focus on your areas of expertise and keep your messaging consistent and clear
- Ask clients for feedback at meetings and via surveys on matters such as your service areas, newsletters, website etc.
- Write articles on various topics and case studies. Local and trade press can provide useful window toward potential clients and employees.
- Events and seminars work well whether hosting the entire event, or being a guest speaker at events.
- Aside from work, what do you like to do in your spare time?
For me it’s the five Fs; family, friends, fitness, fun, food and wine.
I am very content in my personal life. I don’t have a bucket list because there is nothing I need or want other than in these five areas. Combinations of Fs are best of all, family or friends for dinner is great. Cycling with friends followed by a coffee or a beer with plenty of banter hits the spot too.
Biography
Sandy Robertson is managing director of Acumen Financial Planning, and has worked in banking, accounting and financial services for 40 years.
In 1995, he was the first person in Scotland to become a fellow of the Institute of Financial Planning, now part of the CISI. Sandy is a member of the Institute of Bankers in Scotland, a fellow of the Chartered Association of Certified Accountants, a Certified Financial Planner and a Chartered Fellow of the Chartered Institute of Securities & Investment.
He is trained in Collaborative Practice in accordance with the International Academy of Collaborative Professionals and helps develop standards on financial matters of divorce and separation.
Acumen Financial Planning was formed in 2002 and has grown from a small team to an established firm, with some of the highest qualified planners in Scotland. An Accredited and Chartered firm, Acumen Financial Planning has offices in Aberdeen, Edinburgh, Elgin and Peterhead.
